A New Jersey agency has agreed to ban Tesla from selling cars directly to consumers in the Garden State Tuesday.
Tesla (TSLA) has been selling directly to shoppers at two locations in New Jersey for about a year, but state officials will now force the automaker to sell cars through a franchised car dealership.
James Chen, a Tesla attorney, told members of the New Jersey Motor Vehicle Commission that the change will force Tesla to close its existing sales operations in the state and layoff 27 employees, according to documents posted to the commission's website.
Tesla's practice of selling its Model S electric sedan directly to consumers is unusual and has run into problems before. Chief Executive Officer Elon Musk has tangled with dealership associations in various states including Texas and New York.
Friday, March 14, 2014
New Jersey Require Tesla to Sell via Franchise Auto Dealers, Tesla Closes NJ Showroom, Lays off Employees
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